Civil Society Dialogue on Trade and Sustainable Development

Brussels, 18 July 2018

Madelaine Tuininga

DG TRADE

Unit D1 Trade and Sustainable Development

Debate on TSD implementation (11 July 2017)

1. Consensus:

Even if there are important achievements …

These achievements are insufficiently communicated (transparency and communication)

And overall the EU must step up efforts and improve the implementation of TSD chapters

Shortcomings to be addressed (examples):

Lack of understanding of TSD chapters

Lack of delivery, lack of focussed action (priorities)

Insufficient use of resources available in EU (COM, EEAS, MS, EP)

Insufficient use of existing monitoring and enforcement mechanism

Insufficient use of multilateral bodies (ILO, MEAs)

Functioning of Domestic Advisory Groups, role of business

Insufficient use of leverage (moments)

Transparency – DAGs, TSD committee what happens generally and what happens with non-compliance issues. Insufficient response to concerns and issues raised by CSOs

2. Divergent views:

Main diverging views on:

Trade sanctions (withdrawal of trade concessions or monetary fines)

Complaint mechanism to trigger dispute settlement

Context/underlying issues

Evidence on effectiveness of trade sanctions in TSD context is still scarce if not inexistent.

Expectations of sanctions: in terms of scope (trade impact); but is it also the quick fix? (procedures can take years, see Guatemala)

15 points action plan (Commission non-paper of 27 February 2018)

15-points action plan

Commission non-paper to MS and EP of 27 February 2018 (feedback of the debate)

Working together

Member States, European Parliament (1); international organisations (2)

Enabling civil society to play its role

Monitoring role of civil society (3); responsible business conduct (5)

Extend the scope for civil society to the whole FTA (4)

15 points action plan (2)

Delivering

Step up action throughout the cycle (negotiation to implementation): country priorities (6); early ratification core conventions (8); assertive enforcement (7)

Strengthen commitments on climate action (12) and labour (occupational health and safety; labour inspection) (13)

Capacity building: handbook (10); (financial) resources (12)

Regular evaluation: reviewing effectiveness of implementation (9)

Transparency and communication

More transparency and better communication (14)

Time-bound response to TSD submissions (15)

We have already started to work

Action 1: Partnership with MS and EP

With MS

The TSD experts group meetings are held several times per year.

Partnership with Sweden in assisting Ecuador's early stage of the implementation of the TSD chapter - a good example of building synergies between COM and MS.

Commission is in contact with EU delegations to ensure close collaboration with MS embassies in FTA partners on TSD implementation.

With EP

Currently Commission continues good practice to regularly engage with EP on TSD through monitoring groups, INTA agenda points, technical debriefs, individual contacts,..

Commission informally indicated to assistants in EP to be open to reinforce ways to work with EP on TSD.

Action 3: Facilitate the monitoring role of civil society

• PI project on its way. It should be ready to start to be implemented towards the end of the year.

• Commission and EESC started to regularly take stock on TSD implementation to identify and address bottlenecks more efficiently and spread good practices.

Action 5: Taking action regarding business conduct

• Commission is actively using FTAs to increase awareness and practical knowledge on CSR, building on cooperation with the ILO and OECD.

• In the context of EU-Central America Trade Agreement, the EU organised a successful workshop on responsible business practices in 2018 in Guatemala. The event brought together policymakers, ILO, OECD, business, trade unions and civil society.

• We are now also launching a CSR project in the Asia region.

Action 7: More assertive enforcement

• The Commission stepped up monitoring and analysis of compliance with TSD commitments by a number of FTA partner countries.

Action 8: Better focus on early ratification of core international agreements

During negotiations

• Encourage the early ratification of core international agreements is guiding our negotiations with Australia and New Zealand. We aim to repeat the positive experience we had with Canada.

Prior to entry into force

• In Vietnam, Singapore and Japan efforts to push for the ratification of outstanding ILO conventions are a key part of our engagement in the pre-implementation efforts.

Action 10: Handbook for implementation

• The pilot project to assist the early stage of implementation in Ecuador; led by Sweden with active contribution by the Commission.

• Commission is engaging in implementation preparation missions and DVCs in new FTA partners (e.g. Canada last April, Japan mission envisaged,..)

Action 12: Strengthen commitments on trade climate action

• Reinforced trade and climate provisions: Mercosur, Mexico Chile, Vietnam, Japan, Singapore.

• Introduction of reinforced trade and climate provisions through "Recommendation" for Canada.

Action 13: Extending the scope of the labour provisions

• Commission's proposal for a TSD chapter tabled in the negotiations with Chile includes commitments on occupational health and safety and labour inspection system in line with international standards. Similar provisions are likely to be tabled for Australia and New Zealand.

Thank you